Students: Debts

Business, Innovation and Skills written question – answered on 27th January 2011.

Alert me about debates like this

Photo of Gareth Thomas Gareth Thomas Shadow Minister (Business, Innovation and Skills), Party Chair, Co-operative Party

To ask the Secretary of State for Business, Innovation and Skills what discussions he has had with the Council of Mortgage Lenders about the effects of student debt on likely levels of mortgage lending to graduates; and if he will make a statement.

Photo of David Willetts David Willetts Minister of State (Universities and Science)

The Council for Mortgage Lenders have advised that a student loan is very unlikely to materially impact on an individual's ability to get a mortgage. However the reduction in net income may result in a commensurate reduction in the amount a mortgage lender is willing to lend.

Our proposal to increase the repayment threshold from £15,000 to £21,000 will reduce the amount borrowers need to repay each month, and therefore increase the amount of net income available to them which could be helpful to them when applying for a mortgage.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.